One of the complicated things about bankruptcy in Oklahoma is deciding between a chapter 13 and a chapter 13.  The major difference between a chapter 13 and a chapter 7 bankruptcy is that a chapter 13 is more like a reorganization of both secured and unsecured debt. On the other hand a chapter 7 bankruptcy forgives most unsecured debt without forcing you to pay anything back.

Oklahoma Chapter 13

 In a chapter 13 you’re required to repay certain debts to the creditors over a period of 3 to 5 years.  The debts you have to repay depend on if the debt is secured or if its unsecured. It also depends on the amount of your disposable;e income available after you pay for necessary expenses. The percentage of the unsecured debt you repay can range from 100% down to nearly nothing

Your monthly payment is made through a payroll intercept from your paycheck. This is paid to the chapter 13 Oklahoma bankruptcy trustee who distributes it to your unsecured creditors. The chapter 13 plan payments last from 3 to 5 years.

To qualify for a chapter 13 you must be working. Based on the plan and based on your disposable income the math must work. This means that you must have enough disposable income to pay both your secured debts and something to the unsecured creditors.

Oklahoma Chapter 7

In a chapter 7 bankruptcy most if not all of the debt is discharged when the case closes. From filing date to till the end  it usually takes 75 or so days.  The chapter 7 is more like a liquidation. This means that all of your den=bt that’s not secured is wiped clean and forgiven.  If the debts secured by collateral you’ll  be required to reaffirm the debt and continue to make payments or loose the collateral. In a chapter 7 if the asset is paid off and it is exempt  under Oklahoma Bankruptcy Exemptions you may keep it.  An example of an exempt asset that you can keep in a chapter 7 is your home and car. Other assets include 401 K and all qualified retirement plans.

The Reason To File Chapter 13

Another Difference Between a Chapter 13 and a Chapter 7 is that to file chapter 7 your income must be below a maximum amount. This is called the means test. The means test will test your income and if its to high you have to file a chapter 13.

Another reason to file a chapter 13 is to save your home if its in foreclosure. If you have unpaid payments the chapter 13 will consolidate them. The amount of the unpaid mortgage is paid put over the length of the plan